TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan admits that Indonesia’s regulations on investment require improvement. He opined bureaucratic red tape had considerably kept investors from entering the country.
“President (Jokowi) has ordered us to ease [investment licensing process], which has been obstructed so far,” said the Coordinating Minister in his office, Central Jakarta, Friday, Oct. 11.
The country's red tape relative to business licensing process has often burdened Indonesia while vying with other countries at the global level. Sluggish licensing process has also compromised Indonesia's competitiveness, and thus achievements.
The latest data of Global Competitiveness Report released by the World Economic Forum (WEF) showed that Indonesia’s rank in 2019 dropped five levels to 50th. The decrease was attributable to the country's adoption of Information and Communication Technologies (ICT), health, skill development, labor market, as well as trade and services.
Luhut Pandjaitan continued that the decline in Indonesia’s economic achievements would be the subject of evaluation of the first Working Cabinet, whose term will be over soon. He underlined that easing the licensing process as one of the drivers of the country's economy would be a vital study for the government in the future cabinet. "We will see in the next cabinet. We will fix it," he concluded.